Core Viewpoint - Oak Valley Bancorp reported a mixed performance for the fourth quarter of 2025, with a slight increase in net income year-over-year but a decline in full-year earnings compared to 2024, alongside improvements in net interest income and non-interest income [1][2][4]. Financial Performance - For Q4 2025, Oak Valley Bancorp's net income was $6.3 million, or 76 cents per share, up from $6 million, or 73 cents per share, in Q4 2024, reflecting a 4.1% year-over-year increase [1][2]. - Full-year 2025 net income totaled $23.9 million, or $2.88 per share, down from $25 million, or $3.02 per share, in 2024 [2]. - Total net interest income for Q4 reached $19.5 million, a 9% increase year-over-year, while annual net interest income rose 6.5% to $74.6 million [2]. Key Business Metrics - The net interest margin (NIM) for Q4 was 4.14%, up from 4.00% in the same quarter last year, attributed to higher loan yields and reduced funding costs [3]. - Non-interest income increased to $1.8 million in Q4, a 27.6% rise from $1.4 million a year earlier, driven by higher investment advisory fees and service charges [4]. Expense Management - Non-interest expenses grew 6.2% year-over-year to $12.3 million in Q4, with annual non-interest expenses climbing 9.3% to $50.3 million due to higher staffing costs and operational expenses [5]. Operational Efficiency - The efficiency ratio improved to 55.9% in Q4 from 58.1% a year ago, indicating better operational leverage, while the full-year efficiency ratio slightly increased to 59.7% from 58.2% [7]. - Return on average assets for Q4 was 1.3%, consistent with the previous year, while full-year return on assets decreased to 1.2% from 1.4% [7]. Credit Quality - A provision for credit losses of $0.9 million in Q4 was linked to a commercial real estate loan placed on non-accrual status, resulting in non-performing assets rising to $4.6 million, or 0.2% of total assets [8]. - The allowance for credit losses as a percentage of gross loans increased to 1.1% from 1% in Q4 2024, indicating stable overall credit quality [9]. Shareholder Returns - The board declared a cash dividend of 37.5 cents per share, payable on February 13, 2026, marking the first dividend payment of 2026, with an annual dividend for 2025 of 60 cents per share, up from 45 cents in 2024 [10]. Company Growth - Oak Valley Bancorp surpassed $2 billion in total assets, attributed to consistent growth and strong client relationships, while maintaining 19 banking offices across Central California and the Eastern Sierra region [6][11].

OAKDALE, Calif., Jan. 26, 2026 (GLOBE NEWSWIRE) -- Oak Valley Bancorp (NASDAQ: OVLY), the bank holding company for Oak Valley Community Bank and Eastern Sierra Community Bank, announced that Christopher M. Courtney has notified the Boards of his intention to retire as Chief Executive Officer of both entities on June 30, 2026. Courtney joined Oak Valley Community Bank in 1996 and served in several executive leadership roles, including EVP Chief Operating Officer and EVP Chief Credit Officer. He became Presid ...

Financial Performance - Consolidated net income for Q4 2025 was $6,335,000, or $0.76 per diluted share, a decrease of 4.1% from $24,948,000, or $3.02 EPS for the year 2024[3] - Net income for Q4 2025 was $6,335,000, down from $6,008,000 in Q4 2024, indicating a decrease of 11.2% year-over-year[18] - Earnings per share (diluted) for Q4 2025 was $0.76, compared to $0.73 in Q4 2024, showing an increase of 4.1%[18] Income and Expenses - Net interest income for Q4 2025 was $19,457,000, an increase from $19,197,000 in the prior quarter, driven by a growth of $38.3 million in average earning assets[5] - Non-interest income for Q4 2025 was $1,825,000, compared to $1,973,000 in the prior quarter, primarily due to prior quarter death benefits from bank-owned life insurance[7] - Non-interest expense for Q4 2025 totaled $12,262,000, a decrease from $12,700,000 in the prior quarter, attributed to year-end accrual adjustments[8] Assets and Loans - Total assets reached $2.02 billion as of December 31, 2025, an increase of $122.5 million compared to December 31, 2024[9] - Gross loans amounted to $1.14 billion, reflecting an increase of $31.1 million from the prior quarter and $37.4 million year-over-year[9] - Total assets at the end of Q4 2025 reached $2,023,116,000, up from $1,900,604,000 at the end of Q4 2024, marking an increase of 6.5%[20] - Gross loans increased to $1,143,930,000 in Q4 2025 from $1,106,535,000 in Q4 2024, representing a growth of 3.4%[20] Asset Quality - Non-performing assets were $4.6 million, or 0.23% of total assets, due to one collateral-dependent loan placed on non-accrual status[10] - The allowance for credit losses as a percentage of gross loans increased to 1.08% at December 31, 2025, from 1.03% at September 30, 2025[10] Shareholder Returns - The company declared a cash dividend of $0.375 per share, totaling approximately $3,145,600, to be paid on February 13, 2026[11] Efficiency and Returns - The efficiency ratio for Q4 2025 improved to 55.94%, down from 58.09% in Q4 2024, indicating enhanced operational efficiency[18] - The return on average common equity for Q4 2025 was 12.32%, compared to 12.86% in Q4 2024, showing a slight decline[18] Stock Performance - The stock price at the end of Q4 2025 was $30.06, up from $29.25 at the end of Q4 2024, indicating a year-over-year increase of 2.8%[20] Cost of Funds - The average cost of funds stabilized at 0.76% in 2025, compared to 0.78% in 2024[5] Year-over-Year Comparisons - Net interest income for Q4 2025 was $19,457,000, an increase from $17,846,000 in Q4 2024, representing a growth of 9.0% year-over-year[18] - Non-interest income in Q4 2025 was $1,825,000, compared to $1,430,000 in Q4 2024, reflecting a year-over-year increase of 27.6%[18] - The book value per share increased to $24.79 in Q4 2025 from $21.95 in Q4 2024, reflecting a growth of 12.8%[20]

Core Insights - Oak Valley Community Bank has appointed Carlos Chavez as Vice President and Branch Manager of the Stockton Branch, where he will focus on branch operations, client relationships, and growth initiatives [1][4] Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and Eastern Sierra Community Bank, providing a range of loan and deposit products to individuals and small businesses [4] - The bank has 19 branches located in various cities including Oakdale, Turlock, Stockton, and others [4] Leadership Background - Carlos Chavez brings over 21 years of banking experience, previously serving as Vice President and Branch Manager at a large national bank, with a strong record in operational leadership and sales performance [2] - He has been recognized as a President's Club recipient and has consistently achieved top performer honors [2] Community Involvement - Chavez is a long-time resident of Stockton with strong community ties, actively involved in organizations such as the San Joaquin Hispanic Chamber of Commerce and Stockton Rotary [3] - He advocates for financial literacy and engages in youth coaching and outdoor activities [3] Executive Statement - Julie DeHart, Executive Vice President of Retail Banking Group, expressed confidence in Chavez's leadership and community commitment, aligning with Oak Valley's values [4]

Core Viewpoint - Oak Valley Bancorp has announced the promotions of Bill Nunes to Executive Vice President, Chief Marketing Officer, and Jose Sabala to Senior Vice President, Community Reinvestment Act (CRA) Officer, highlighting the company's commitment to enhancing its marketing strategies and community engagement initiatives [1]. Group 1: Promotions and Roles - Bill Nunes has been promoted to Executive Vice President, Chief Marketing Officer, after joining the bank in 2005 and serving as Senior Vice President, Marketing Manager [2]. - Jose Sabala has been promoted to Senior Vice President, CRA Officer, having joined the bank in 2018 and significantly enhancing the CRA program through expanded outreach and strategic community partnerships [4]. Group 2: Contributions and Impact - Nunes has played a crucial role in developing and executing the bank's marketing and brand strategy, which includes advertising, communications, public relations, and strategic partnerships [2]. - Sabala oversees CRA compliance and execution, ensuring alignment with regulatory expectations and the bank's mission to serve and strengthen communities, supporting economic development and improving access to credit for low- and moderate-income individuals and businesses [4]. Group 3: Leadership and Community Involvement - Nunes is recognized as a strategic thinker with a deep understanding of markets and community needs, serving on the board of Second Harvest of the Greater Valley and the Gallo Center for the Arts [3]. - Sabala is actively involved in local organizations, serving as Board Vice President of City Ministry Network and Board Chair of Access Plus Capital, among other roles, demonstrating his commitment to community relationships [5]. Group 4: Company Overview - Oak Valley Bancorp operates Oak Valley Community Bank and its Eastern Sierra Community Bank division, offering a variety of loan and deposit products through 19 branches located in various cities [6].

Core Insights - Oak Valley Community Bank has appointed Dan Greene as Vice President and Branch Manager of the Tracy branch, succeeding John Capri who is retiring in January [1][2][3] - Greene brings nearly 30 years of banking experience and a strong community connection, having lived in Tracy for over two decades [2] - The bank operates 19 branches across various locations, offering a range of loan and deposit products to individuals and small businesses [3] Company Overview - Oak Valley Community Bank is a wholly-owned subsidiary of Oak Valley Bancorp, listed on NASDAQ as OVLY [1] - The bank focuses on operational strategy, client relationship management, and community presence [1][3] - The bank's branches are located in cities including Oakdale, Turlock, Stockton, and several others, including a division in the Eastern Sierra [3]

Financial Performance - For the three and nine-month periods ended September 30, 2025, the Company recorded net income of $6,693,000 and $17,578,000, representing decreases of 8.6% and 7.8% compared to the same periods in 2024[101] - Return on average assets (annualized) was 1.35% and 1.22% for the three and nine-month periods ended September 30, 2025, down from 1.56% and 1.38% in 2024[101] - Net interest income was $19,197,000 and $55,158,000 for the three and nine-month periods ended September 30, 2025, reflecting increases of $1,542,000 and $2,970,000 from the comparable periods in 2024[104] - Non-interest income for the three and nine-month periods ended September 30, 2025, was $1,973,000 and $5,289,000, representing increases of 6.9% and 3.2% year-over-year, respectively[124] - Non-interest expense increased by $1,376,000 and $3,543,000 for the three and nine-month periods ended September 30, 2025, mainly due to staffing increases and overhead related to servicing growing business portfolios[102] Asset and Liability Management - Total assets increased by $94,812,000 or 5.0%, total net loans increased by $6,062,000 or 0.6%, and deposits increased by $79,192,000 or 4.7% from December 31, 2024 to September 30, 2025[102] - The total assets as of September 30, 2025, were $1,961,374, an increase from $1,863,983 as of September 30, 2024[107] - Total deposits increased by $79,192,000 or 4.7% to $1,774,882,000 as of September 30, 2025, compared to $1,695,690,000 as of December 31, 2024[155] - Average deposits rose by $73,712,000 to $1,714,473,000 for the nine-month period ended September 30, 2025, compared to the same period in 2024[155] - Demand deposits increased by $57,878,000 or 5.3% to $1,159,633,000 as of September 30, 2025[156] Interest Income and Margin - The net interest margin was 4.16% and 4.12% for the three and nine-month periods ended September 30, 2025, compared to 4.04% and 4.08% for the same periods in 2024[106] - For the three months ended September 30, 2025, net interest income increased by $1,570,000 compared to the same period in 2024, driven by a $940,000 increase from volume changes and a $630,000 increase from rate changes[114] - For the nine months ended September 30, 2025, total interest income was $66,550, an increase of $3,616 compared to the same period in 2024[110] - The net interest spread for the nine months ended September 30, 2025, was 3.67%, compared to 3.62% for the same period in 2024[110] Credit Quality - The Company recorded a reversal of credit loss provisions of $60,000 during the three and nine-month periods ended September 30, 2025, compared to a reversal of $1,620,000 during the same periods in 2024[102] - The Company recorded a reversal of provisions for credit losses of $60,000 for the three and nine-month periods ended September 30, 2025, indicating stable credit quality[123] - Non-performing loans remained at a zero balance throughout the nine-month period ending September 30, 2025, indicating strong asset quality[123] - As of September 30, 2025, total non-performing assets remained at $0, indicating strong credit quality within the loan portfolio[143] - The allowance for credit losses decreased to $11,420,000 as of September 30, 2025, down from $11,460,000 as of December 31, 2024, due to net loan charge-offs of $40,000[145] Capital and Liquidity - The Company had $247,155,000 in cash and cash equivalents as of September 30, 2025, compared to $168,751,000 as of December 31, 2024[150] - As of September 30, 2025, the Company's total capital to risk-weighted assets ratio was 16.1%, exceeding the minimum requirement of 10.5%[162] - The Company's Tier I capital to risk-weighted assets ratio was 15.2% as of September 30, 2025, above the minimum requirement of 8.5%[162] - Liquid assets increased to $494.8 million as of September 30, 2025, compared to $431.8 million as of December 31, 2024, representing a liquidity level of 24.8% of total assets[165] - The Company had commitments to extend credit of $206.9 million as of September 30, 2025, up from $185.8 million as of December 31, 2024[168] Operational Strategy - The Company’s shareholder value strategy focuses on enhancing shareholder value, increasing the retail banking franchise's value, and efficiently utilizing capital[100] - Management anticipates that non-interest expenses will continue to increase as the Company grows, but remains committed to cost-control measures[136] - The liquidity management strategy includes maintaining cash and cash equivalents, salable government guaranteed loans, and securities available for sale[165] - The Company had no brokered deposits as of September 30, 2025, maintaining a strategy focused on core deposit growth[157] Regulatory Environment - The CFPB's recent rulemaking process may impact the Company and the Bank, with compliance dates currently stayed pending reconsideration[169] - Proposed Basel III Endgame rules are expected to be more capital-neutral than the original proposal, with a revised version anticipated for public comment in early 2026[162]

Core Points - Oak Valley Community Bank has received a $150,000 AHEAD grant from the Federal Home Loan Bank of San Francisco to support City Ministry Network's initiatives aimed at empowering Latino youth [1][4] - The grant will enhance the Hispanic Youth Leadership Clubs by introducing a "career ready" curriculum and launching Latino Leadership Circles at local colleges, providing coaching and professional networking opportunities [2][4] - The 2025 AHEAD Program awarded a total of $8 million in grants to 64 projects across Arizona, California, and Nevada, highlighting the demand for local economic development support [4] Company Overview - Oak Valley Community Bank is a wholly-owned subsidiary of Oak Valley Bancorp, operating 19 branches across California, offering various loan and deposit products [6] - The bank is committed to community investment and economic development, aligning its mission with the goals of the AHEAD grant program [3][4] Industry Context - The Federal Home Loan Bank of San Francisco plays a crucial role in supporting local lenders and community development initiatives, providing resources that drive economic vitality and affordable housing [8] - The AHEAD grant program is designed to address pressing needs in low- to moderate-income communities, reflecting a broader mission of economic support and community resilience [4][8]

Core Insights - Oak Valley Bancorp's shares increased by 5.7% following the earnings report for Q3 2025, outperforming the S&P 500's 1% growth during the same period [1] Financial Performance - For Q3 2025, Oak Valley reported a net income of $6.7 million, or 81 cents per share, a decline of approximately 9% year-over-year from $7.3 million and 89 cents per share in Q3 2024 [2][3] - Net interest income rose to $19.2 million, reflecting an 8.7% year-over-year increase driven by asset growth and improved loan yields [3] - Non-interest income increased to $2 million from $1.9 million in the prior-year period, attributed to a one-time life insurance policy redemption gain and higher investment advisory fees [4] Expense and Efficiency Metrics - Non-interest expenses rose by 12.2% to $12.7 million, linked to higher staffing and operational costs [5] - Return on average assets decreased to 1.4% from 1.6% year-over-year, while return on average common equity fell to 14.3% from 16.5% [5] - The net interest margin improved slightly to 4.16% from 4.04% a year ago, and the efficiency ratio improved to 58.3% from 56.4% [6] Management Commentary - CEO Chris Courtney emphasized the bank's commitment to growth and operational execution, highlighting the opening of a new full-service branch in Lodi as part of strategic expansion efforts [7] - The bank's focus on measured expansion and customer-centric operations was reiterated, with the hiring of six new full-time employees in Q3 to support loan and deposit portfolio growth [8] Factors Influencing Earnings - The decline in net income was primarily due to the absence of a $1.6 million credit loss reversal recorded in Q3 2024, which was not replicated in 2025 [9] - Rising non-interest expenses due to workforce expansion and infrastructure investments contributed to margin pressures, although these were partially offset by higher net interest income [10] Recent Developments - A significant development was the launch of a new branch in Lodi on October 2, 2025, supported by a modest increase in headcount during Q3 [12]

Financial Performance - Consolidated net income for Q3 2025 was $6,693,000, or $0.81 per diluted share, compared to $5,588,000, or $0.67 EPS in the prior quarter, and $7,324,000, or $0.89 EPS a year ago [3][4]. - Net income for the nine months ended September 30, 2025, was $17,578,000, down from $18,940,000 in 2024, reflecting a decrease of 7.2% [18]. - Earnings per share (basic) decreased to $2.13 in 2025 from $2.30 in 2024, a decline of 7.4% [18]. - Return on average equity decreased to 12.71% in 2025 from 14.90% in 2024 [18]. - The return on average common equity improved to 14.30% in Q3 2025 from 12.21% in the prior quarter [15]. Income Sources - Net interest income increased to $19,197,000 in Q3 2025 from $18,154,000 in the prior quarter and $17,655,000 a year ago, attributed to average earning asset growth and rising loan yields [5]. - Non-interest income for Q3 2025 was $1,973,000, up from $1,703,000 in the prior quarter and $1,846,000 a year ago, driven by a one-time gain from a life insurance policy redemption [6]. - Net interest income for the nine months ended September 30, 2025, was $55,158,000, an increase from $52,188,000 in 2024, representing a growth of 3.7% [18]. Assets and Liabilities - Total assets reached $2.00 billion as of September 30, 2025, an increase of $74.5 million from June 30, 2025, and $95.0 million from September 30, 2024 [8]. - Gross loans were $1.11 billion at September 30, 2025, reflecting an increase of $3.0 million from the prior quarter and $37.7 million from a year ago [8]. - Total deposits increased to $1.77 billion as of September 30, 2025, up by $63.6 million from the prior quarter and $84.6 million from the same period last year [8]. - Total assets increased to $1,995,416,000 in 2025 from $1,900,455,000 in 2024, marking a growth of 5.0% [18]. - Deposits rose to $1,774,882,000 in 2025, up from $1,690,301,000 in 2024, indicating an increase of 5.0% [18]. Operational Efficiency - The efficiency ratio increased to 61.00% in 2025 from 58.24% in 2024, suggesting a decline in operational efficiency [18]. - The allowance for credit losses as a percentage of gross loans was 1.03% at September 30, 2025, unchanged from the prior quarter and down from 1.07% a year ago [9]. - Non-performing assets remained at zero as of September 30, 2025, consistent with all of 2025 and 2024 [9]. Growth and Expansion - The company opened its 19th full-service branch in Lodi on October 2, 2025, as part of its growth strategy [7]. - The number of full-time equivalent staff increased to 237 in 2025 from 222 in 2024, indicating a growth of 6.8% [18]. Stock Performance - The stock price at the end of the period was $28.17, up from $26.57 in 2024, reflecting an increase of 6.0% [18]. - Book value per share increased to $23.63 in 2025 from $22.18 in 2024, representing a growth of 6.5% [18].